You can clearly see the shadows on the left that she walked out of are not lit.

Also, the ISO is BLOWN OUT on your image to create the false perception of a well lit scene, you can tell by the significant pixel noise that incredible amounts of digital amplification have been applied to this image.

This is a better approximation of human sight: https://i.imgur.com/djOuoZr.jpg

The image you linked is just so digitally distorted that it's very misleading. Heck, your linked image is so distorted that the sky is literally grey!

I am pretty sure that this accident happened because of the way autonomous software makes decisions on its surroundings. I am almost certain the car knew there was an object but evaluated it incorrectly.

There are lots and lots of false positives a self driving car has to disregard just to make its way along any street. Mailboxes on curbs, random parked cars, bridges, signs, and so on. I think the car unfortunately made a bad decision.

To say the LIDAR/RADAR or IR cameras didn't pick the person up is to say that these cars are woefully under-equipped to sense their environment.

I think the Police report was just working off of current operating Police knowledge and expectations of the law.

If there is a bike in the road, I want my car to stop; whether a prankster kids push it out just in time or it's a woman pushing it across slowly.

I don't think I implied anything to say that a car should treat a bike or any other object moving into its path as a false positive. To the contrary, what I was saying is that it did treat it as a false positive but that was obviously not the intention of the engineers.

My overall point is simple, the car almost certainly saw the person - it just had to have, but the way it evaluated what to do about it was wrong because evaluating reality, as it turns out, is incredibly complex.